Thanksgiving: It's a Time for Giving, But.

Thanksgiving is a time for not only giving thanks, but opening our hearts to those who are less fortunate than us. Between the Thanksgiving and Christmas season, you will see more mail in your mail box from charities if you ever have given to one in the past. Recently, my husband and I received a solicitation for a charity that hits home to our heart - giving to Native American organizations. It is called American Indian Relief Council (AIRC). In the past we have given to Southwest Indian Foundation, only to find out that is a questionable charity. Nevertheless, we were happy with the products we have received from Southwest Foundation. Yet, apparently, since then, we have been on every Native American charity list.

So here are some tips, so that you should consider before opening your heart and wallet to any charity.

Tip: Check with your state government agency for their list of charity registrations. Ifyou are thinking of giving a substantial amount of money, verify their financial statements. This also includes regulations on professional fund raisers used by charities.

Tip: IRS publication 78, "Cumulative List of Organizations" is a yearly list of tax-exempt organizations that will allow you to deduct your donations. Call IRS; 1- 800-829-1040 for more information and to receive the list of charities. Best time to ever call IRS is in the early morning around 8 AM EST due to heavier volume that you may experience later in the day.

Tip: Find out what is the charity expense ratio for every dollar they receive from donors. Charities are not here to make profits, yet at the same time, they need to make sure they aren't spending more than they are taking in. It is important that you know if you give them $1, how much of that dollar is going directly to the cause; then evaluate if it's a worthwhile cause. A study done in February 2008 by the Ellison Research in Phoenix, Arizona shows that most people felt 22 cents out of every dollar ought to spend on expenses by charities.

Tip: Many people give to charities for the tax benefits. Click here to see your tax saving, "Here."You could find out that you can afford more to give after you realize how much you are saving from your taxes.

Tip: Be careful not to fall for photos enclosed in mailings that might bring out your emotions. This applies especially to seniors who are on limited budgets. There is no need to feel guilty. Many of the unethical charities will try and use this technique to go through your heart to get to your purse strings.

Tip: To stop solicitation by mail, click, "here" for the steps to opt-out.

With the down turn of the economy, you can be assured you will be receiving a lot of mail regarding how you can help the less fortunate. Getting back to that American Indian Relief Association solicitation I received the other day. Well, after doing some research on the Internet, I found this:

" AIRC states in it IRS Form 990 that its primary purpose is "To focus public attention upon the needs, concerns, and conditions of those people in need." This charity receives an "F" grade from AIP because in our opinion in 1998 it spent only 34% of its budget on program services and spent $62 to raise each $100 of contributions." This was posted by an organization called, "Charity Watch." There are other organizations on the Internet that can help you decide before you write your check. Take time out to do your own due diligence.